Released: October 31, 2008

CVS slashes generic drug costs, escalates price war

Source: Lisa Girion and Andrea Chang, LA Times (Free Registration)

One of the nation’s largest drugstore chains ratcheted up a price war Thursday, offering deep discounts on generic prescriptions amid national concern about the spiraling cost of healthcare.

Drugstore giant CVS Caremark Corp. announced it would sell 90-day supplies of more than 400 medications for $9.99 and offer discounts for cash-paying patients at its in-store medical clinics.

The price war was unleashed by Wal-Mart Stores Inc., the country’s largest retailer, a few years ago. Since then, many grocery stores have followed suit.

The price competition makes generic drugs just about the only healthcare bill that isn’t escalating. The lower prices provide a measure of relief to consumers who are struggling with rising health insurance premiums and other out-of-pocket expenses or have lost coverage altogether.

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